Evaluation based on distance from average solution sorting with central profiles: novel multi-criteria inventory classification in make-to-order manufacturing

Inventory classification in make-to-order (MTO) manufacturing requires more than traditional ABC methods, which focus mainly on cost or consumption. In environments with high customization and dynamic production, multi-criteria inventory classification offers a broader perspective by considering multiple internal and external factors. In this regard, current literature offers an array of approaches that extend multi-criteria decision-making methods to handle multi-criteria sorting problems. This study contributes to the discussion by introducing EDAS-Sort-C, a novel method that combines Evaluation based on Distance from Average Solution (EDAS) with ABC classification. Instead of limiting profiles, EDAS-Sort-C employs central profiles for each class as averages and then evaluates inventory items based on the computational framework of EDAS. Within each class, items are also ranked by importance to facilitate the identification of more critical items. A case study in an MTO furniture firm, using six criteria and 157 inventory items, confirms the effectiveness of the proposed EDAS-Sort-C.